Selling, general and administrative costs . Selling, general and administrative costs increased by $3.1 million to approximately $3.9 million for the three months ended June 30, 2011, as compared to approximately $0.8 million for the three months ended June 30, 2010. This was primarily due to the anti-crisis measures our company implemented during the fiscal year 2010, such as a reduction in force and more efficient utilization of the remaining personnel, as well as the savings we realized on the costs of transportation, communications, security and lease of an additional office space offset by increases in professional fees and approximately $2.0 million in costs in setting up planned operations in the Middle East, which plan was abandoned by the Company in the second quarter of 2011.
Income (Loss) from Operations. Income from operations decreased to a loss of approximately $1.1 million, from income of approximately $5.3 million for the three months ended June 30, 2011, primarily due to significant increases in cost of goods sold and selling, general and administrative expense during the three month period ended June 30, 2011.
